Apple App Store in China suspected of monopoly complaints


Apple App Store in China suspected of monopoly complaints

According to the Beijing Daily reported that in August 7th, domestic developers and lawyers, legal experts team held a press conference that the Apple Corp operating app store App Store in the long run, suspected of illegal infringement and the existence of monopolistic behavior, and the plan is expected in August 8th, formally to the two anti-monopoly law enforcement departments of the State Administration for Industry and Commerce and the national development and Reform Commission report.
That report related party law firm: Apple Corp may have alleged abuse of market dominance and violation of state on the Internet information service, web publishing service laws and regulations in the operation of App Store in the process of behavior, there is damage to mobile application developers, operators and the legitimate rights and interests of consumers may. And Apple Corp App Store operating in the relevant market suspected of abuse, mainly as follows:
Refusing to trade shows that China’s developer software does not give specific explanations.
Differential treatment, foreign developers request processing efficiency is different, some provisions without chinese.
Conditional trading, that is, tying, showing consumption within the application, can only use applepay payment.
Overpriced, mainly concentrated in Apple’s electronic service industry charge 30% and ranging from pumping.
Forced release
The application of an online karaoke, due to the three major record companies including a general complaint, Apple was suddenly off the shelf, forced to pay a license fee to download a software tool back on the shelves; encountered the American Association of pressure, without violating the Chinese method under the condition of being a smart shelf; the electric car is only a built-in navigation using SIM card purchase channel, is off the shelf……
Because Apple Corp has only made internal mail notifications for applications’ shelves, a sudden drop off can cause huge economic losses for a large group of users. According to the domestic AppStore ranking optimization service platform ASO100 data show that China APP applications under the shelf problem is very serious. Between August 2016 and October, more than thirty thousand Chinese apps were released, many of them well-known apps uploaded by Chinese developers. In June 2017, within 20 days, Apple Corp had 89205 applications, accounting for about 4% of the total applications. According to incomplete statistics, since 2013, there are nearly 30 developers, including car home, today’s headlines, a live broadcast and so on, nearly 60 popular applications have been under the shelf.
According to Xiao law firm partner Lin Yu, the Apple Corp is mainly based on “3.2 developer agreement” (f) terms as the basis of the shelf, but the application of this clause is more abstract, led to the shelf program opaque; and finally there are developers complaints can not be properly solved, many in 2017 March is off the shelf and immediately appeal to users, or even a clear response in 2016 under the framework of the user still can’t get Apple Corp.
In June 10, 2017, Apple Corp released its latest “developers” clause written into the so-called Chinese localization Innovation — a reward is pumped into, its content is: mobile phone users in the APP software to the original author of the “reward”, which belongs to the in app purchase; then, according to the provisions of this clause as the Apple Corp will be in accordance with the a reward value of 30% to the IOS end of the original author (i.e. APP software developers) charge pumping into. If you do not accept Apple’s 30% Commission arrangement, or the application has hidden other ways to pay, Apple’s approach is to apply the next shelf.
It is reported that Apple’s reward is divided into “direct reward” and “buy + reward” two. On the direct implementation of the user’s reward behavior, the majority of experts in the industry’s views belong to the gift, which also conforms to the true meaning of the user. The Apple Corp believes that the view that it belongs to the purchase within the application lacks factual and legal basis, and that buying is a transaction, and that the core of the transaction is consideration, and that such reward is a lack of consideration. Based on this, Apple Corp in accordance with the amount of reward received 30% of the pumping is not appropriate. On the implementation of the “user purchase + reward behavior, Apple Corp to buy virtual property based on the requirements of pumping into nothing wrong, but it must be clear, not in the pumping into a reward for behavior; the percentage of 30% is appropriate, you need to consider from the perspective of competition law.
Infringement judgment
In fact, the Apple App Store in China is no entity, apple registered business company in China, mainly for hardware sales, and the application store is directly operated by the United States headquarters. Therefore, the management of the Apple App store, that product is not infringement, is not off the shelf, this right is in the hands of apple, it is greater than the right of the judiciary.” Lin Yu expresses.
Insiders said that apple is reluctant to decentralize the power of the application store, lies in the huge benefits behind it. In the fourth quarter of 2016 earnings show, Apple Corp with 18% of the market share, but won 92% of the industry’s profits. Apple Corp’s profits come mainly from the following: Apple phones, Apple computers, app stores, and other hardware devices. In recent years, Apple hardware profit growth, profit growth target has been transferred from more hardware to provide application services based on stock of equipment, is looking for a new growth point in the app store, in the financial data, it is Apple’s app store profits but record highs a fast growth rate.
Apple Corp iOS system is currently in the urban areas of China’s share

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